I rebooted and got another blue screen -- same error. I took the memory back out, and booted clean again. Then I downloaded and installed the windows update standalone package available for KB929777. I rebooted to make sure I got a clean reboot with 2GB ram, which I did. Then I added the RAM back in and I've rebooted a few times just fine.
I think I may finally be in the clear. What a pain though!